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Where Software Outsourcing Might Work In Your Business

By Edited Nov 13, 2013 0 0

We commonly get asked "What will be the entire value of software outsourcing?" when we converse to likely patrons or colleagues. It's undoubtedly not always a fit, but our company consider generally there is a wide variety of scenarios during which it's really a no-brainer. I generally break it down based on the software philosophy of one's organization, the type of business that you will be in and the focus belonging to the organization.

The term "software philosophy" is actually simpler than is sounds - does your company focus on deploying primarily COTS (Commercial Off The Shelf Software) or Custom Developed Software? Generally speaking, it makes more sense to deploy COTS for established, non-strategic needs. More on that in a subsequent post. If the main objective is COTS, you can find often connectors to legacy and SOA-enabled systems, customizations and plugins that can be developed and contributed to the COTS product. These make use of software outsourcing because they are generally tightly scoped, templated components of work which can be easily transferred to an outside team. They are not a worry to transfer directly back to an IT shop for maintenance after the fact. Finally, these components of work are likely to be using a "unique skillset" area where, after the project is complete, there is very little value in maintainting that skillset inside the organization. If the main objective is on custom <a href="http://www.tindr.co">software development</a>, the choice of software outsourcing or developing internally go down to additional circumstances.

What kind of business you have may be a critical point to consider in software outsourcing. In the case of non-technology businesses, it generally is just smart to outsource your software development while focusing onto your core business. Where things get murkyis when an organization has got an established and running IT department that already incorporates software development. In those cases, the organization needs to examine its software process carefully to figure out whether it is getting value from this work. What we regularly see is that IT departments are managed in an exceedingly specific way to be sure that many of the systems remain up, running and completely functional. The largest part of projects use the mode of "building a house" from plans instead of "inventing a lightbulb" (More on that in a later post). As a result, it often will work better to outsource software for new project implementations and integrate the final product in to the IT environment as an IT project. It comes down to applying core focus in the right areas - when the outsourcer focuses on their core - creating great new software - and the IT department specializes in their core - driving business value by way of the implementation and management of IT systems. When the organization does maintain a separate software group for internal development or external application development, there are another range of things to consider.

With organizations with software development as the focus and also a core competency, there exists the question of how software outsourcing corresponds. There are two scenarios that we have seen work nicely. In both cases, the question boils down to which software the organization desires to target. The initial scenario generally refers to internal software development - with either operations or as a SaaS product. When a company has an existing custom made application they are planning to maintain concurrently as rolling out a brand new version of their application, there is generally a short-term requirement to "duplicate" their team. At that time, software outsourcing and, particularly, our Variable Demand Services, works effectively. Generally, using this type of approach, it is recommended that the corporation have a look at outsourcing taking care and enhancement of the existing application while their core team, potentially by incorporating assistance, develops against the alternative one. This ensures that the modern application is supportable and closely maps to the business requirements. The second scenario generally applies to software product companies. The core focus of software product companies is their roadmap. Their roadmaps were carefully crafted to produce the functions which will hold the widest appeal in their market and therefore propell the process of your company forwards. However, these organizations are generally plagued with customization and integration requests from customers. While these requests are often funded, it is not inside the DNA of those organizations to deliver "Professional Services" and it's really beyond the borders of their core focus to work on these items as one-offs. As such, software outsourcing to an organization like ours that makes our money on professional services, is an excellent fit and we've had some great relationships with product companies to accomplish this sort of work.

In fact, software outsourcing is usually a good fit for just about any type of business but it's vital that you find the area carefully and to work closely together with your outsourcer to ensure consistent and high quality result.


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